What is a lease of use and profits agreement and when to use it

A lease of use and profits agreement allows the lessee not only to use an item but also to enjoy its fruits and profits.
Unlike a simple lease, the lessee gains the right to exploit the object economically.

Typical examples:

• lease of agricultural land (field rental with the right to harvest crops),

• lease of vineyards, orchards, fish ponds,

• lease of a business enterprise.

Legal framework

This agreement is governed by the Czech Civil Code (Sections 2332 to 2357).
Key features:

• right to use and enjoy the item,

• obligation to pay rent (pachtovné),

• duty to care for the item as a prudent manager,

• obligation to return the item in appropriate condition after termination.

Mandatory elements of a lease of use and profits agreement

• Identification of the lessor and lessee

• Subject of the lease (e.g., land, business, vineyard)

• Right to use and enjoy fruits and profits

• Amount of rent and payment terms

• Duration of the lease (fixed or indefinite)

• Maintenance obligations

• Conditions for returning the item

• Date and signatures

Most common mistakes in practice

• Confusing this agreement with a standard lease

• Inadequate description of the leased subject (especially land or business)

• Failure to address maintenance and repairs

• No allocation of risks for damages

• Missing conditions for the return of the item

Recommendations for lessors and lessees

Lessor:

• Clearly specify the fruits and profits transferred to the lessee.

• Set maintenance standards for the item.

Lessee:

• Ensure the contract defines normal wear and tear.

• Agree on how investments will be handled during the lease.

Tip from practice

In agricultural land leases, disputes often arise over soil degradation. It is advisable to agree on farming standards (e.g., restrictions on chemical treatments) and allow regular inspections.

Basic lease of use and profits agreement template – available for a symbolic fee

If you need a simple template for the lease of land, vineyards, fish ponds, or a business, I can send it by e-mail for a symbolic fee.

This template is suitable for standard cases and serves as a working draft.
For more complex leases, I am happy to prepare a customized agreement for you.

If interested, please contact me via e-mail, contact form, or message. We will arrange everything quickly and easily.

FINAL THOUGHTS – WHAT NOW?

A lease of use and profits agreement isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting.